§ 1341.

LOW AND MODERATE INCOME OCCUPANCY

The provisions of this Section and its application to certain properties may be affected by amendments creating Section 1344. Please consult Section 1344 in addition to this Section for Units subject to the Below Market Rate Condominium Conversion Program.

a.

In all subdivisions involving 50 or more lots or units, except for condominium or cooperative conversion subdivisions, the subdivider shall make available 10 percent of the units for low and moderate income occupancy provided that the Department of City Planning finds that governmental subsidies for such occupancy are available to the subdivider. This requirement shall not limit the authority of the City otherwise to encourage the provision of low and moderate income housing, or of the subdivider to make available additional low and moderate income housing.

b.

In all condominium or cooperative conversion subdivisions with five or more lots or units, the subdivider shall make available 10 percent of the lots or units for rental or for purchase by households of low or moderate income. In the event that the total number of units determined to be within the low or moderate income housing stocks pursuant to Section 1385 is greater that 10 percent of the total number of units in the subdivision, such greater number shall apply, and such number of units determined to be within the low or moderate income housing stock shall be made available for purchase as set forth in Section 1385, thereby precluding the application of the alternatives set forth in Section 1341 to such number of units. In the event the total number of units determined to be within the low or moderate income housing stock pursuant to Section 1385 is less than 10 percent of the total number of units in the subdivision, the difference between such number of units determined to be within the low or moderate income housing stock and the 10 percent required by Section 1341 may be satisfied by the alternatives set forth in this Section.

c.

If the units are to be made available for purchase, then the sales prices of such units shall not exceed 2.5 times the annual median income for low or moderate income households, as defined, and as adjusted for household size according to the relationship to the size of the dwelling, as set forth in Section 1309. Priority for purchase of these units shall be as set forth in Section 1385. Any low or moderate income household which purchases a dwelling pursuant to this Section shall grant a right-of-first-refusal, to the City and County of San Francisco, or to such other entity that at a future time may be designated by the City and County of San Francisco, to repurchase the dwelling from the initial purchaser at the original price plus the cost of any improvements paid for by the owner, plus an increase proportionate to the increases in the housing component of the “Bay Area Cost of Living Index, U.S. Dept. of Labor,” over the intervening time period. The City and County of San Francisco, or designated agent, shall reconvey such unit to other qualified purchasers if the right to purchase is exercised by the City or its designated agent.

d.

If the converted units are to be for rental, then the rent in such units shall not exceed the rent charged at the time of filing the application for conversion, or the maximum rent that would be allowed so as to keep the unit within moderate income housing stock, whichever rent level is lower. Once established, rent levels for any units remaining as rental pursuant to this Section may be increased annually consistent with any changes in the residential rent component of the “Bay Area Cost of Living Index, U.S. Dept. of Labor.” In cases of hardship to the subdivider, or in cases where a rent increase authorized herein is considered by the tenant to be not consistent with increases in the residential rent component of the Bay Area Cost of Living Index, either a subdivider or a tenant may request relief under this Section from the Director or his or her designee. In considering the reasonableness of a rent increase, the Director shall consider whether the rental revenues are sufficient to adequately maintain the building in safe and sound condition, and in conformity with any applicable sections of the San Francisco Housing and Building Codes. The Director may allow rent increases greater than the proportionate increases in the residential rent component of the “Bay Area Cost of Living Index, U.S. Dept. of Labor,” in order to allow the building to be maintained in safe and sound condition. The rental increase provisions of this Section shall apply only in the absence of other applicable rent increase or arbitration laws.

e.

Converted units made available for purchase by households of low or moderate income pursuant to this Section, or purchased by a tenant or qualified household subject to the price limitation of Section 1385, shall remain within the low or moderate income housing stock pursuant to the recapture provision of Subsection (c) above. Units made available for rental pursuant to Subsection (d) above shall remain as rental units for no less than 20 years, provided, however, that such rental units may be sold by the original subdivider or any subsequent owner during such 20-year period at a price not exceeding the price at which the City and County of San Francisco would be entitled to repurchase the unit if exercising its right of first refusal under Subsection (c) above, and further provided that such maximum price shall not reflect the cost of any improvements made within two years after recording of the final or parcel map for the conversion.

f.

As an alternative to the provisions of Subsections (b) and (c) above, the subdivider shall make a bona fide agreement, satisfactory to the Department of City Planning, to construct or cause to be constructed within a period commencing 18 months prior to the date of filing the application for conversion and ending 18 months after filing of the final or parcel map, or to provide through other means, the same number of units and under the same conditions as would be required for low or moderate income occupancy under the provisions of Subsections (b), (c) and (d) above, in areas approved by the Department of City Planning as being non-impacted with assisted housing.

g.

As a further alternative to the provisions of Subsections (b), (c) and (f) above, the subdivider shall pay to the City and County of San Francisco an amount equal to 10 percent of the difference between the aggregated total of the proposed market rate sales prices, as indicated on the price list supplied with the application packet, and the aggregate total of the sales prices if the units were to be sold at moderate-income sales prices, as determined by the sales price formula of Section 1385 and Subsection (c) above. This payment shall be made within two years of the recordation of the Final Map.

h.

Funds collected pursuant to Subsection (g) above, shall be deposited into the Housing Development Fund, which fund is to be used for persons and households of low or moderate income.

History

(Amended by Ord. 45-82, App. 2/11/82; Ord. 148-88, App. 3/30/88; Ord. 257-88, App. 6/22/88; Ord. 320-08, File No. 080520, App. 12/19/2008)

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